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☆ Fear of Layoffs Is Changing How People Buy Homes
▼ + stars: | 2023-03-17 | by ( Veronica Dagher | ) www.wsj.com time to read: 1 min

Employment contingencies appeal to tech and finance workers rattled by recent waves of layoffs. More home buyers are putting an unusual escape clause into their contracts: If they lose their job before closing, they can back out of the deal. Known as an employment contingency, these provisions appeal to tech and finance workers rattled by recent waves of layoffs, real-estate agents and lawyers said. Fears over a recession and the fallout in the tech and banking sectors following the failure of Silicon Valley Bank, may only increase their popularity this home-buying season, they said. Like any contingency, this clause will weaken your offer in some competitive markets even if it helps settle your fears.

☆ What caused the global banking crisis this week and will it lead to a recession?
▼ + stars: | 2023-03-17 | by ( Mark Thompson | ) edition.cnn.com time to read: +7 min

Silicon Valley Bank’s customers were frantically pulling their money from the California-based lender before US regulators intervened to take control. Thursday, March 16 — First Republic Bank was teetering on the brink as customers withdrew their deposits. In guaranteeing all deposits at Silicon Valley Bank and Republic Bank, the US Federal Reserve is on the hook for $140 billion. Then there’s the $54 billion the Swiss National Bank offered Credit Suisse in the form of an emergency loan. The $318 billion the Fed has loaned in total to the financial system is about half what was extended during the global financial crisis.

☆ The typical home for sale in the US has had its price cut, been on the market for months, and comes with at least one sweetener for buyers
▼ + stars: | 2023-03-16 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +1 min

This year's home buyers still have to dig deep to afford the typical home for sale in the US. With the median home-sale price at $352,750 and mortgage rates hovering above 6%, housing affordability is at an all-time low. But that doesn't mean prospective buyers have to throw in the towel. There are more homes available for sale, and many home sellers are taking additional and unusual steps to sell their properties. In short, housing market dynamics are shifting, giving some buyers a better shot at achieving homeownership.

☆ US home building surged in February
▼ + stars: | 2023-03-16 | by ( Anna Bahney | ) edition.cnn.com time to read: +3 min

Washington, DC CNN —US home building jumped higher in February, turning around after five consecutive months of falling. As mortgage rates trended lower from November through January, builders have begun to feel more optimistic that conditions may improve in 2023. But recent strong economic data and uncertainty in the banking sector mean that inflation concerns remain, along with volatile mortgage rates. In February building permits were at a seasonally adjusted annual rate of 1.524 million. “However, interest rates and development costs remain high, while prices are softening — which is impacting the potential upside on home sales.”And mortgage rates remain volatile for buyers.

☆ Mortgage rates plunge in wake of bank failures
▼ + stars: | 2023-03-16 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —Mortgage rates dropped this week in the wake of several bank failures, reversing course after rising half a percentage point over the past month. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The events of the past week, ranging from strong economic indicators to unforeseen events in banking, sent mortgage rates down. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. “This year, both prices and mortgage rates are higher than a year ago, resulting in a 50% increase in housing costs for the typical US home.

☆ China's economic activity uneven in Jan-Feb after COVID reopening
▼ + stars: | 2023-03-15 | by ( Ellen Zhang | Kevin Yao | ) www.reuters.com time to read: +3 min

REUTERS/Tingshu WangProperty investment in the January-February period fell again as home buyers and developers remained cautious despite a slew of supportive government policies. The reading accelerated from a 1.3% annual rise in December. The mixed data portrayed an uneven recovery in economic activity following China’s abrupt abandonment late last year of its three-year-long campaign to control COVID-19. Within January-February fixed-asset investment, infrastructure investment surged 9.0% from a year before. China has set a modest annual growth target of around 5% this year after significantly missing its target for 2022 and recording one of its worst showings in nearly half a century.

☆ Homebuilders say demand is rising, but they're concerned about a banking fallout
▼ + stars: | 2023-03-15 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +3 min

The National Association of Home Builders/Wells Fargo Housing Market Index rose two points to 44. "But given recent instability concerns in the banking system and volatility in interest rates, builders are highly uncertain about the near- and medium-term outlook." Of the index's three components, current sales conditions rose two points to 49, and buyer traffic rose three points to 31. Accordingly, the housing market continues shifting as growing household and family formation continued to drive demand against a chronic supply shortage." In the South it rose five points to 45, and in the West it moved four points higher to 34.

To help you get started, CNBC Select rounded up a list of the best mortgage lenders first-time homebuyers should consider. Types of loans offered: The most common kinds of mortgage loans include conventional loans, FHA loans and VA loans. The most common kinds of mortgage loans include conventional loans, FHA loans and VA loans. Fees: Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees. Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees.

☆ Mortgage rates rise for the fifth-straight week
▼ + stars: | 2023-03-09 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

Washington, DC CNN —Mortgage rates edged further toward 7%, rising for the fifth consecutive week, as the Federal Reserve suggests rate increases will continue amid stubborn inflation. “Mortgage rates continue their upward trajectory as the Federal Reserve signals a more aggressive stance on monetary policy,” said Sam Khater, Freddie Mac’s chief economist. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. Housing market chilledRising mortgage rates have put a damper on the spring selling season. While applications for a mortgage rose slightly last week after three weeks of declines, according to the Mortgage Bankers Association, activity is muted.

☆ Housing market sentiment is nearing all-time lows as Americans fret over mortgage rates and employment outlook
▼ + stars: | 2023-03-08 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

US housing-market sentiment is edging back to an all-time-low, according to Fannie Mae. That's because Americans are worried over rising mortgage rates and the unemployment outlook. Markets are expecting more interest rate hikes from the Fed, which could help keep mortgage rates elevated. That's partly because of the Federal Reserve's aggressive rate hikes to control inflation, which have influenced mortgage rates to hover around twenty-year high. Markets are now expecting even steeper rate hikes from the Fed after Chairman Jerome Powell's hawkish testimony to lawmakers this week, with expectations for a 50 basis-point increase in March rising after his remarks.

☆ The US housing market is short 6.5 million homes
▼ + stars: | 2023-03-08 | by ( Anna Bahney | ) edition.cnn.com time to read: +6 min

The gap between single-family home constructions and household formations grew to 6.5 million homes between 2012 and 2022. However, this figure overstates the housing shortage, since new multi-family homes offer options both to buyers and renters. During the same time period, 13.3 million housing units were started, and 11.9 million were completed. This includes 9.03 million single-family homes and 4.2 million multi-family homes. Of those, only 8.5 million single-family homes and 3.4 million multi-family homes are completed.

☆ What's a mortgage rate buydown? 3 things you need to know to avoid 'lighting money on fire'
▼ + stars: | 2023-03-05 | by ( Jason Stauffer | Elizabeth Gravier | ) www.cnbc.com time to read: +11 min

How does a mortgage rate buydown work? The terms are sometimes used interchangeably, so it's important to understand how your individual mortgage lender is defining the buydown. When you pay for discount or mortgage points, you permanently lower your mortgage's interest rate (as opposed to buydowns which only temporarily lower the rate). So it may make less sense for these types of borrowers to pay for a lower rate. You'll want to pay attention to your mortgage's closing costs because the fees you pay can wipeout the potential savings from securing a lower mortgage rate.

☆ Will Home Prices Drop in 2023?
▼ + stars: | 2023-03-03 | by ( ) www.wsj.com time to read: +5 min

As of January, prices were down 13% from that June high, according to the National Association of Realtors. Will home prices drop in 2023? The University of California San Diego, for example, predicts prices will drop 5% nationally and as much as 18% in some cities. As a result, the U.S. housing market has been short on for-sale listings for more than a decade. “This is the easiest way to find out if you got a good price on your home in comparison to what else is on the market.”Finally, understand your finances.

☆ Racial homeownership gap larger now than a decade ago
▼ + stars: | 2023-03-02 | by ( Anna Bahney | ) edition.cnn.com time to read: +7 min

The homeownership rate for White Americans in 2021 was 72.7%, but the rate for Black Americans was 44%, according to NAR’s analysis of the most recent data. The homeownership rate for Asian Americans was 62.8% and for Hispanic Americans it was 50.6%. The homeownership rate for Black Americans varies from 15% to 55% across the country. The states with the highest homeownership rate for Black Americans were South Carolina at 55%, Delaware at 54%, and Mississippi at 54%. Meanwhile, the homeownership rate for White Americans ranged from 50% to 81% across the country.

☆ Mortgage rates rise for the fourth week in a row
▼ + stars: | 2023-03-02 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —Mortgage rates shot up for the fourth consecutive week, as inflation concerns remain. “However, given sustained economic growth and continued inflation, mortgage rates boomeranged and are inching up toward 7%.”The lower rates in January brought buyers back into the market, Khater said. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. “The recent jump in mortgage rates has led to a retreat in purchase applications, with activity down for three straight weeks,” said Bob Broeksmit, MBA’s CEO.

☆ One of China’s richest women takes over for her father at real estate developer Country Garden
▼ + stars: | 2023-03-02 | by ( Laura He | ) edition.cnn.com time to read: +4 min

Yang Guoqiang, founder of Country Garden, attends a signing ceremony in November 2017 in Guangdong province. VCG/Getty ImagesThe elder Yang was a farmer and construction worker before he founded Country Garden in 1992. In little more than a decade, he grew the firm into one of the largest real estate developers in the country. Last year, Country Garden was China’s No 1 developer by sales, which reached $67 billion. An aerial view of a residential project developed by Country Garden in Zhenjiang city in eastern China's Jiangsu province in October 2021.

☆ Mortgage applications drop 28% as rates climb
▼ + stars: | 2023-03-01 | by ( Anna Bahney | ) edition.cnn.com time to read: +2 min

With mortgage rates half a percentage point higher over the past month, home buyers are pulling back even as the spring home buying season should be heating up. Mortgage applications were down 5.7% for the week ending February 24 from the week prior as rates trended higher, according to the Mortgage Bankers Association. “After a brief revival in application activity in January when mortgage rates dropped down, there has now been three straight weeks of declines in applications as mortgage rates have jumped 50 basis points over the past month,” said Joel Kan, MBA’s vice president and deputy chief economist. The Fed does not set the interest rates that borrowers pay on mortgages directly, but its actions influence them. Mortgage rates tend to track the yield on 10-year US Treasury bonds, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions.

☆ Pending home sales blew past expectations last month as buyers pounced on lower rates
▼ + stars: | 2023-02-27 | by ( Anna Bahney | ) edition.cnn.com time to read: +3 min

Washington, DC CNN —Pending home sales crushed expectations in January, when mortgage rates dropped from recent highs of more than 7% and home buyers jumped at the opportunity. According to data released Monday from the National Association of Realtors, it was the largest monthly sales increase since June 2020. The pending sales index, based on signed contracts to buy a home rather than the final sales that are accounted for in existing home sales, rose by 8.1% from December to January, beating economists’ predictions for a rise of 1%. “Buyers responded to better affordability from falling mortgage rates in December and January,” said Lawrence Yun, chief economist at NAR. But since then, mortgage rates have risen again, climbing almost half a percentage point since the beginning of February, according to Freddie Mac.

☆ New home sales rise as prices drop in January
▼ + stars: | 2023-02-24 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

CNN —New home sales rose in January from December, as mortgage rates eased off their highs of the past year at the start of 2023. Sales of new single‐family houses were at a seasonally adjusted annual rate of 670,000 last month, up from a revised 625,000 in December. Mortgage rates eased in January and ended the month nearly a point lower than they were at the beginning of November when they topped 7%. But in addition to volatile mortgage rates, another challenge for many buyers has been finding homes on the market to buy. “The backlog of new construction homes continues to emerge into the market just in time for the spring shopping season,” she said.

☆ In China, more families on the fence on home buying, foreclosures cloud sector
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +3 min

Stabilising the crisis-hit property sector will be a key challenge for policymakers this year as they try to kick-start an economic recovery. The number of families opting to stay on the sidelines for property in the last quarter rose to 27.2% of respondents from 20.1% in July-October, the survey showed. Respondents' willingness to allocate money to domestic stocks, funds, and overseas asset classes also increased, the survey showed. Cities with high numbers of foreclosures were mostly in central and western China, as well as the prosperous Yangtze River Delta and Pearl River Delta regions, according to the property research firm. But analysts expect a sustainable recovery in the sector will only kick in towards the second half of this year.

☆ Your Credit Score Affects Your Mortgage Rate—Here’s How to Improve It
▼ + stars: | 2023-02-22 | by ( ) www.wsj.com time to read: +9 min

How does your credit score affect your mortgage rate? “There is no single, specific credit score that will automatically qualify you for a mortgage.”What else determines your mortgage rate? How to check your credit scoreTo get your credit score, check your banking or credit card dashboard if you have one. Many come with automatic credit score monitoring, allowing you to check your score at any time. Make on-time paymentsThe best way to improve your credit score is to avoid late payments—particularly on student loans, credit cards and other types of debts that get reported to credit bureaus.

☆ Biden admin cuts some mortgage fees amid housing affordability crisis
▼ + stars: | 2023-02-22 | by ( Anna Bahney | ) edition.cnn.com time to read: +7 min

The move affects mortgage insurance premiums paid by new borrowers who take out loans insured by the Federal Housing Administration. But for homebuyers struggling to enter the housing market, there are some loans like FHA that come with required mortgage insurance. But for borrowers unable to enter the housing market another way, FHA loans can often be the cheapest option. In addition, only a fraction of all home sales are financed with FHA loans. Only 811,362 out of 5.7 million purchase loans originated in 2021 were FHA loans, or about 14.3%, according to HUD.

Hong Kong will issue vouchers worth HK$5,000 ($637) per person to all adults this year, half the amount issued in 2022. Hong Kong usually runs balanced budgets or surpluses, since its pegged currency system commits it to fiscal prudence. "HAPPY" HONG KONG? He also said a "Happy Hong Kong" campaign would be launched for the general public, including gourmet food fairs and harbourfront carnivals that would help stimulate consumption. ($1 = 7.8488 Hong Kong dollars)Additional reporting by Jessie Pang; Writing by Marius Zaharia and James Pomfret; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

☆ White House to roll out plan to lower first-time home buyers' mortgage costs
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: +1 min

Feb 22 (Reuters) - The White House on Wednesday will unveil a plan to reduce mortgage insurance fees charged to first-time home buyers, helping an estimated 850,000 borrowers save about $800 a year on the cost of a typical loan, it said in a statement. Vice President Kamala Harris will announce the plan to lower fees on Federal Housing Administration (FHA) loans at an event in the Washington suburb of Bowie, Maryland. The FHA charges the fees to insure lenders against riskier loans often taken out by lower-income home-buyers. Government data last week showed single-family homebuilding and permits for future home construction declining in January. The 30-year fixed mortgage rate rose to an average 6.32% last week from 6.12% the week prior, according to data from mortgage finance agency Freddie Mac.

Analysts estimate that nearly $700 billion of mortgages – close to one-eighth China's outstanding total – have been prepaid since early last year, when banks started to lower borrowing rates. This threatens banks' profits on mortgages, which accounted for about 30% of outstanding loans at China's five biggest banks as of last June, according to their latest financial reports. The current disinterest in new home purchases contrasts sharply with the overheated property market of prior years, when authorities kept mortgage rates high to cool speculation. Towards the middle of last year, however, regulators began lowering benchmark mortgage rates to prop up property demand, after a liquidity crisis among developers sent home prices and sales into a downward spiral. "I decided to do so because I'm burdened with a mortgage rate that's too high," Wang said.

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